Dec. 27. 2005
Marubeni Corporation is pleased to announce that it signed a joint venture agreement with Toray Industries (China) Co., Ltd. and Qingdao Jifa Group Co., Ltd. (Jifa Group) on December 24, 2005 to establish a clothing factory for men’s dress shirts in Jimo City, Shandong Prefecture, China. The factory is expected to start production in October 2006 with a production capacity of 2.4 million products per year.
Marubeni has been developing the shirt business in the Japanese market primarily by supplying discount retailers with shirt products with high-quality products imported from China at competitive prices. We have now set up key policies that include not only a stable supply of products to the Japanese market, but also an increase in exports to Western markets and expansion within the domestic Chinese market. Consequently, it has become an urgent challenge for us to establish a production base that is more stable than the existing ones in China.
The Jifa Group, based in Jimo, Qingdao, is one of China’s largest manufacturers of cut and sewn products and has earned a strong international reputation for its high quality and competitive products. The Jifa Group has already developed businesses jointly with Marubeni, including establishing a joint corporation for an underwear manufacturer in October this year.
The Group has resolved to start a fabric business as the third main business, in addition to the Group’s two core businesses, namely wigs and cut and sewn products, to continue to enhance its business this year, which is the fiftieth anniversary of the Group since establishment. To pursue this objective, Jifa Group has jointly established a manufacturing company for blended polyester and cotton fabrics with Toray Industries, Inc. and Toray Industries (China) Co., Ltd.
Toray Industries (China) Co., Ltd., a fully owned subsidiary of Toray Industries, Inc. participated in the establishment of the new joint corporation. We will aim at establishing a system that will enable this joint corporation to become a Chinese supply base where the products are processed from fabric to finished product, by utilizing a new fabric company that was established by the Jifa Group under its new policy.
In addition, we will seek future business development through the establishment of this joint corporation, which will further strengthen the alliance between Marubeni Corporation and the Jifa Group. In addition, it will incorporate the production capacity of the joint fabric company set by the Jifa Group and the Toray Group and the sales capacity of Marubeni Corporation.
[Corporate Profile of the New Company]
Name : Qingdao Jifa Huajin Garments Co., Ltd.
Address : Jifa Longshan Industry Park, Jimo, Qingdao
Business activities : Manufacture and sales of fabric shirts
focusing on men’s dress shirts
Main stockholders : Jifa Group 65%, Marubeni Corporation 25%,
Toray Industries (China) Ltd. 10%
Capitalization : 26,560,000 RMB
[Corporate profile of Qingdao Jifa Group Co., Ltd]
Address : Jimo, Qingdao, Shandong Prefecture, China
Representative : Song Yangliang (Chairman),
Yang Weidong (President)
Business activities : Manufacture and sale of wigs, the spinning,
weaving, dyeing and sewing of knits,and other activities
Main stockholders : Jifa Group 60%, external stockholders 40%
Capitalization : 237 million RMB
[Corporate profile of Toray Industries (China) Co., Ltd.]
Address : Shanghai City, China
Representative : Akikazu Shimomura (Chairman),
Eizo Tanaka (President)
Business activities : Control of overall business of the Toray Group in China
Main stockholders :Toray Industries, Inc. 100%
Capitalization : 98 million RMB